During 2011 China increased wafer fab capacity faster than the worldwide average for the second year in a row and for nine out of the past eleven years. During the past year, China increased the net number of fabs in production by 13, or 9%---and increased its net capacity by 9%---while the worldwide industry only increased the net number of fabs in production by 25, or 2%, for a 4% increase in net capacity. Based upon their current plus committed capabilities, China could increase and maintain its share of total worldwide semiconductor wafer production from the <2% realized in 2003 to ≥ 10.7% through 2015.
From a business model standpoint, China’s wafer fabrication capabilities remain noticeably different from worldwide capabilities. Foundry capacity continues to dominate both China’s current and committed capabilities.
China's impact on the semiconductor industry
Since 2007, China’s wafer foundry revenue growth of 2% CAGR has been significantly less than the worldwide average growth of 8% CAGR. Based upon its current capabilities, China should be able to increase its share of worldwide foundry production to slightly more than 19% by 2013 by fully equipping and ramping to full capacity at mature yields all of their existing wafer fabrication modules. This could have a significant impact on the semiconductor industry. However, its relative revenue growth will lag significantly if its foundries continue to compete on price rather than leading-edge technology.
|Market & industry overview||Chapter 1|
|China's semiconductor industry||Chapter 2|
|Design in China||Chapter 3|
|Greater China: The bigger picture||Chapter 4|
|Manufacturing: Growing capabilities||Chapter 5|
|Government and production growth scenarios||Chapter 6|
|Download the full report as custom PDF||All|